Monday, July 15, 2019

GOLD - 15 July 2019


Fundamental Highlights

Gold prices are consolidating at the start of the week, following a bullish close on Friday as investors price in a rate cut from the Federal Reserve later this month. However, on the kind of data we have started to see in the jobs sector and last week's inflation data, it could be a one and done scenario, especially if trade negotiations continue to find traction. During last week, the US Consumer Price Index for June came in a touch stronger than market expectations and same goes for the US June PPI which is a sign that the US is not at risk of a deflationary slide. In other news, tension between China and the US seemingly eased somewhat as Reuters reported that the US may grant licenses for companies to restart sales to Chinese telecommunication equipment maker Huawei in as little as two weeks.

Technical Analysis

Gold headed north during Friday’s session as the price consolidated well above the $1400 level after re-finding the right bullish momentum. The price is currently trading above the $1410.78 support level as it constantly providing the right support. The momentum is turning more and more bullish in a slow pace but we will keep on focusing to the upside, especially the $1422.81 resistance level.

Support: 1410.78 / 1401.62
Resistance: 1422.59 / 1435.81

Chart (H4)